| Article 5 |
When a cross-border custody participant applies to TDCC for handling of settlement of cash and securities or transferring of securities, unless the settlement of cash and securities is being handled through the use of services involving automatic generation of settlement instructions, it may adopt one of the following methods:
- Written Instruction Method:
A participant submitting settlement instructions in writing shall complete a Settlement Instruction Letter affixed with its seal on file, and first notify TDCC by fax, then deliver the original document to TDCC within five business days. If five or more settlement instructions are transmitted, the fax submission shall be accompanied by an email attaching the settlement instruction file.
- Electronic Communication Method:
The participant may perform a "Settlement Instruction" transaction or, in accordance with the file specifications provided by TDCC, use a "Settlement Instruction File Upload" transaction or transmit settlement instruction files via SFTP.
The cross-border custody participant, when performing the operations of the preceding paragraph, shall ensure that the cash or securities payable are on deposit in its segregated account before the settlement date.
After checking the information under the preceding paragraph for accuracy, TDCC will notify the foreign depository to carry out the settlement operations.
After TDCC has received notification from the foreign depository that it has completed the settlement process and made the relevant account book entries of cash and securities for the segregated account, TDCC will record them in the cross-border custody participant's account book, and notify the cross-border custody participant.
When a cross-border custody participant carries out the operation under paragraph 1, but finds no transaction-counter-party-information provided in TDCC’s cross-border custody system for execution, the participant shall notify TDCC to create the transaction counterparty file in the cross-border custody system, and then perform the transaction under paragraph 1 over again.
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| Article 5-1 |
When a cross-border custody participant uses services involving automatic generation of settlement instructions to handle the cash and securities settlement operations for securities trades, when TDCC receives notice from the foreign depository of settlement instruction execution status for services involving automatic generation of settlement instructions, TDCC will update the relevant status in the cross-border custody system. The cross-border custody participant may perform an "E2C Awaiting Settlement Instructions" transaction to query the status.
To cancel or modify settlement instructions under the preceding paragraph, the cross-border custody participant shall first perform an "E2C Awaiting Settlement Instructions" transaction and, after confirming that the status of the relevant instruction is "Settlement Not Yet Completed," further perform a "Settlement Instruction (Sub-Brokerage)" transaction to notify TDCC of cancellation or modification of the instruction content, whereupon TDCC will forward notice to the foreign depository.
After TDCC has received notice from the foreign depository that it has completed the settlement instructions under the preceding two paragraphs and made the relevant account book entries of cash and securities for the segregated account, TDCC will perform account book entry operations as provided in paragraph 3 of the preceding article.
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| Article 6 |
When a cross-border custody participant applies to TDCC for handling cash movement from its segregated account to a different financial institution, or to another account at the same foreign depository, it may adopt one of the following methods:
- Written Instruction Method:
A participant submitting settlement instructions in writing shall complete a Cash Instruction Letter affixed with its seal on file, and first notify TDCC by fax, then deliver the original document to TDCC within five business days. If five or more settlement instructions are transmitted, the fax submission shall be accompanied by an email attaching the settlement instruction file.
- Electronic Communication Method:
The participant may perform respectively an “Outward Cash Remittance” transaction or a “Cash Transfer” transaction or, in accordance with the file specifications provided by TDCC, use a "Cash Instruction File Upload" transaction or transmit cash instruction files via SFTP.
After checking the information under the preceding paragraph for accuracy, TDCC will notify the foreign depository to carry out the remittance or transfer. Once the foreign depository has notified TDCC of the completion of the cash movement process and made the relevant entries, TDCC will record them in the cross-border custody participant's account book, and notify the cross-border custody participant.
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| Article 7 |
When a cross-border custody participant applies to TDCC for receipt of cash with its segregated account, it may adopt one of the following methods:
- Written Instruction Method:
A participant submitting settlement instructions in writing shall complete a Cash Instruction Letter affixed with its seal on file, and first notify TDCC by fax, then deliver the original document to TDCC within five business days. If five or more settlement instructions are transmitted, the fax submission shall be accompanied by an email attaching the settlement instruction file.
- Electronic Communication Method:
The participant may perform an "Inward Cash Remittance" transaction or, in accordance with the file specifications provided by TDCC, use a "Cash Instruction File Upload" transaction or transmit inward cash remittance instruction files via SFTP.
After checking the information under the preceding paragraph for accuracy, and once the foreign depository has completed the inward remittance operation and made the relevant entries for the segregated account, TDCC will record them in the cross-border custody participant's account book, and notify the cross-border custody participant.
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| Article 8 |
When a cross-border custody participant applies to TDCC for transfer of securities and cash between its own sub-accounts, it shall perform respectively a “Securities Transfer-sub a/c” transaction or “Cash Transfer-sub a/c” transaction, or submit by fax to TDCC a Settlement Instruction Letter or Cash Instruction Letter affixed with its seal on file.
After checking the information under the preceding paragraph for accuracy, TDCC will record it in the cross-border custody participant's account book, and notify the cross-border custody participant.
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| Article 9 |
When a cross-border custody participant applies to TDCC for foreign exchange, it shall perform a “Foreign Exchange” transaction, or submit by fax to TDCC an FX Instruction Letter affixed with its seal on file.
After checking the information under the preceding paragraph for accuracy, TDCC will notify the foreign depository to carry out the foreign exchange conversion. After the foreign depository has notified TDCC of completion of foreign exchange and made the relevant entries for the segregated account, TDCC will record them in the cross-border custody participant's account book and notify the cross-border custody participant.
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| Article 9-1 |
Instructions submitted by a cross-border custody participant for operations under Article 5 and Article 6 through Article 9 shall be submitted before the instruction cut-off time applicable to the relevant market and currency, as listed under the "Form Download and Query" transaction function in the cross-border custody system. Any participant that fails to meet the applicable cut-off time shall bear sole responsibility for any consequences arising from such delay.
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| Article 10 |
When a cross-border custody participant applies to TDCC for securities lending service, it shall submit an application indicating whether it will use the basic securities lending service on an automatic basis or on a non-automatic (opportunity, case-by-case) basis, or will use the securities lending extended (plus) service, and deliver the application form affixed with its seal on file to TDCC.
After checking the information under the preceding paragraph for accuracy, TDCC will notify the foreign depository to proceed. Once the foreign depository has notified TDCC of the completion of the operation for setting up of the service, TDCC will inform the cross-border custody participant.
When a cross-border custody participant applies to use the basic securities lending service on an automatic basis or securities lending extended (plus) service, the foreign depository will automatically carry out the securities lending operation based on market needs. When a cross-border custody participant applies to use the basic securities lending service on a non-automatic (opportunity, case-by-case) basis, TDCC will receive a notice from the foreign depository of the need for securities borrowing and forward the notice to the cross-border custody participant. TDCC will then notifying the foreign depository to carry out the securities lending operation after obtaining the confirmation from the participant.
Once the foreign depository has notified TDCC of the completion of the securities borrowing operation and made the relevant entries for the segregated account, TDCC will record them in the cross-border custody participant's account book, and notify the cross-border custody participant with relevant statements.
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| Article 11 |
When a cross-border custody participant applies to TDCC for transfer of securities, including those regulated by the Taipei Exchange (TPEx) Rules Governing Management of Foreign Currency Denominated International Bonds, and foreign currency denominated bonds issued overseas by Taiwan nationals or foreign nationals and registered by the securities dealer with the TPEx, from its segregated account at the foreign depository to its depository account in TDCC, or from its depository account in TDCC to its segregated account at the foreign depository, the transfer shall be handled in accordance with Article 19 of the TDCC Directions for the Handling of Book-Entry Transfer Operations for Foreign Currency Denominated Bonds.
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| Article 12 |
When a cross-border custody participant carries out any operation under Articles 5 to 11 with any shortfall in cash or securities TDCC will notify the participant to take further measures.
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| Article 12-1 |
The provisions of Articles 8 and 10 of this Chapter do not apply to foreign securities traded in brokerage trading by the cross-border custody participant.
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